Dollar heading for weekly loss as fears fade; crypto losing steam

Dollar heads for weekly loss as fears subside;  Crypto is losing steam

The dollar hovered around recent lows on Friday and should see a modest weekly decline as traders’ concerns about the cone speech eased in Federal Reserve minutes, despite a fall in commodity prices and nerves over virus outbreaks kept losses in check.

The dollar has returned a rebound it made within minutes of the April Fed meeting after mentioning possible future tapering discussions, raising concerns about premature rate hikes.

Investors now believe that action is still a long way off and that the way could be clear for a resumption of the downtrend in April given the weight of the US trade and account deficits.

“It’s been a little over 24 hours since the markets were startled by the prospect of the US Federal Reserve curtailing asset purchases, but after literally sleeping on it, sentiment seems less sour,” ANZ analysts said in a note. “What seems reasonable – it’s not that the Fed is about to actually want to act.”

In cryptocurrencies, the recovery from the crash on Wednesday lost some of its momentum. Bitcoin was trading at around $ 40,000 in Asia, which is more than 30% above the week’s low, but it struggled to hold gains at the start of the session. Ether also found profits difficult, falling back to $ 2,786.

Heading for a third straight weekly gain, sterling, up 2.6% so far in May, was just below its multi-year high as traders await retail sales and the purchasing managers index data due Friday.

April numbers may be squeezed by lockdowns, but the hope is that the UK reopening this week will lay a solid foundation for recovery in a population where just under three-quarters of adults have received their first vaccination shots.

With all of the recent focus on inflation, rejuvenation and future gains, the Japanese yen lagged. At 133.02 per euro, it is almost the weakest in three years and is facing a fifth consecutive weekly loss against the common currency.

The yen is down 5% against the dollar year-to-date and is the worst performing G10 currency. For some crosses, it has performed even worse, losing nearly 10% against the Canadian dollar and nearly 9% against the pound.

The Techgadgetguides is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Inc.
Tech Reviews and Guides | TGG
Compare items
  • Total (0)